Burlington has some of the tightest rental demand in New England: the University of Vermont, Champlain College and the UVM Medical Center sit within a couple of miles of each other, and the city's old wood-frame triplexes have housed their students and staff for generations.
In short: LendingStreet makes DSCR loans on 1-8 unit rentals in Burlington and across Chittenden County that qualify on the property's rent, with no W-2s or tax returns. Loans start at $150,000 with no stated maximum, purchases go up to 80% LTV and cash-out up to 75% LTV, with a standard minimum DSCR of 1.0x and a 620 minimum credit score. LLC borrowers are standard.
The Old North End is the city's densest rental neighborhood: late 1800s and early 1900s houses split into two, three and four units, close to downtown and the Intervale. The Hill Section near UVM has larger Victorian homes, many converted to apartments and student housing. The South End, including the Five Sisters and Lakeside areas, mixes older single-family homes and duplexes with converted industrial buildings along Pine Street.
The New North End has mid-century capes and ranches that rent to families and medical staff. Across the Winooski River, the city of Winooski has old mill-town multi-units and newer apartments, while South Burlington, Essex Junction, Colchester and Williston add newer condos, townhomes and single-family rentals.
| Area | Typical rentals | Tenant base |
|---|---|---|
| Old North End | Older 2-4 unit houses | Workforce, students, downtown workers |
| Hill Section | Converted Victorians | UVM and Champlain students, staff |
| South End | Older homes, duplexes | Professionals, artists, hospital staff |
| New North End | Capes and ranches | Families, medical staff |
| Winooski, South Burlington, Essex Junction | Mill-town multi-units, condos, townhomes | Commuters, young professionals |
Vermont's education property tax has two rates: a homestead rate for a primary residence and a non-homestead rate for everything else, including rentals. When an investor buys a home from someone who lived in it, the property moves to the non-homestead rate, and the bill can change noticeably. Burlington's municipal tax sits on top of the education tax.
Use the city assessor's value and the current non-homestead rate to estimate taxes, rather than the seller's bill. Rates are set each year, so confirm the current figures with the city before you write an offer.
Burlington runs a rental registration program with periodic minimum housing inspections through the city's code enforcement office, and owners pay an annual registry fee for each unit. Units must meet the city's housing code on heat, egress, smoke and carbon monoxide detection, and basic safety.
Most Burlington rentals were built before 1978, and Vermont's lead law requires owners of older rental housing to follow Essential Maintenance Practices and file compliance with the state. Budget time and money for lead-safe work and paperwork on any older building.
This example is illustrative and not a quote. An investor buys a three-unit house in the Old North End for $615,000. Each unit rents for $1,800, so combined rent is $5,400. Taxes at the non-homestead rate are budgeted at $975 a month and insurance at $260.
At 75% LTV the loan is $461,250, estimated principal and interest is about $3,147, and the payment is about $4,382 for a DSCR of about 1.23x. At 80% LTV the loan is $492,000, the payment is about $4,591 and the ratio is about 1.18x, still above the 1.0x standard minimum.
| Item | 75% LTV | 80% LTV |
|---|---|---|
| Loan amount | $461,250 | $492,000 |
| Estimated principal and interest | $3,147 | $3,356 |
| Taxes and insurance | $1,235 | $1,235 |
| Total payment | $4,382 | $4,591 |
| DSCR at $5,400 rent | 1.23x | 1.18x |
DSCR is the monthly rent divided by the full housing payment: principal and interest, property taxes, insurance and any association dues. A ratio of 1.0x means the rent covers the payment. Higher ratios earn better pricing, and programs below 1.0x exist for properties that fall a little short.
For a purchase, we use the lower of the lease or the appraiser's market rent. On a two-, three- or four-unit house, we add up the rent from every unit. No personal income documents are needed.
Many Burlington multi-units heat with oil or gas boilers, and some still have a single system serving every unit. If you pay the heat, that cost does not appear in the DSCR payment, but it hits your cash flow hard in January. Older buildings also tend to have ice dam and drainage issues, aging wiring and stone or brick foundations that need watching.
Insurers ask about roof age, heating system age, wiring and the number of units. Get a quote early in your inspection period.
Rentals near UVM and Champlain College usually run on June-to-May leases, and many are signed months in advance. That makes demand predictable but also means a missed leasing season can leave units empty for a summer. When you buy, check when current leases end and whether next year's leases are already signed.
Check whether any units are leased to groups of students on a single lease, since that affects how the rent roll is presented.
Burlington regulates short-term rentals, and its rules favor hosts who live on site. Investor-owned whole units rented by the night may not be allowed, so check the current ordinance before you buy for that use. For vacation rental financing, look at resort areas elsewhere in Vermont where nightly rentals are permitted; see our Vermont short-term rental page.
Our investor loans are business-purpose loans on non-owner-occupied property. Send the address, rent roll and price through the form below or call (877) 298-1001, and we will run the numbers at a few loan amounts. For statewide context, see our Vermont DSCR page.
No. The loan qualifies on the property's rent compared with the full monthly payment. We check credit, with a 620 minimum, and confirm funds for closing and reserves.
Vermont taxes a primary residence at the homestead education rate and rentals at the non-homestead rate. Once you own the property as a rental, the non-homestead rate applies. Confirm the current rates with the city.
Yes. The city has a rental registration program with periodic housing inspections and an annual fee per unit. Check current requirements with the city.
Owners of pre-1978 rental housing must follow Essential Maintenance Practices and file compliance with the state. Most Burlington rental buildings fall into this group.
Yes. Two- to four-unit houses qualify on the combined rent of all units, and buildings up to eight units stay in our residential program.
Yes. We lend across Chittenden County. Each town has its own municipal tax rate, so use the local assessor's records.
$150,000, with no stated maximum.
No. Our investor loans are business-purpose loans on non-owner-occupied property.
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